Raymond James upgraded T-Mobile (TMUS) shares to "Outperform" from "Market Perform." The firm set a new price target of $170. This upgrade follows a significant drop in T-Mobile's stock price on Friday amid broader telecom sector concerns.
The investment firm believes the recent selloff, sparked by concerns over competition from SpaceX's expanding mobile service, is an overreaction. Analyst Frank Louthan stated the competitive threat from SpaceX is likely more than three years away. He noted that incumbent carriers like T-Mobile hold significant advantages in network capabilities and spectrum.
Louthan called the recent stock pullback a buying opportunity. He noted T-Mobile's valuation exceeds its peers. However, stronger subscriber growth prospects offset this. The firm expects T-Mobile to continue gaining market share.